Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q1 2021 Earnings Presentation
27 slides from Sime Darby Property Bhd's earnings presentation, May 28, 2021
Slide 1: Q1 FY2021 Financial Results
Q1 FY2021 Financial Results Virtual Analyst Briefing | 28 May 2021 | 10.00am
Slide 2: Table of Contents
Table of Contents Title Page 1. Q1FY2021 Key Highlights (Financial & Operational) 3–4 2. Financial Performance for Q1FY2021 5 – 10 3. Operational Performance for Q1FY2021 11 - 16 4. Strategy Moving Forward 17 – 22 5. Investment Proposition 23 – 24 Q1FY2021 Quarterly Result Announcement and Briefing
Slide 3: Q1FY2021 Key Highlights (Financial)
Q1FY2021 Key Highlights (Financial) Resilience demonstrated by its Q1FY2021 financial performance Financial Performance Snapshot Segment Revenue Leisure Property Revenue Reported PBIT Reported PATAMI 14.1 Development RM589.5m RM97.9m RM60.6m (2.4%) 553.0 (93.8%) Investment & Asset Financial Position
Slide 4: Q1FY2021 Key Highlights (Operational)
Q1FY2021 Key Highlights (Operational) Sales achievement of RM630.2m, on track to meet FY2021 sales target of RM2.4b Operational Highlights • Robust digital marketing efforts led to healthy take-up rates of >90% for the new • Awards won for Sime Darby Property’s launches signature approach to develop
Slide 5: Financial Performance for Q1FY2021
Financial Performance for Q1FY2021 First Quarter ended 31 March 2021 (Q1FY2021)
Slide 6: Profit & Loss Performance
Profit & Loss Performance Revenue increase of 23.7% YoY to RM589.5m; PBIT improvement to RM97.9m for the quarter (vs previous year’s loss); no one-offs in the quarter Financial Performance (YoY & QoQ) Key Takeaways (Restated) (Restated) Q1FY2021 vs Q1FY2020 (YoY) RM mil Q1FY2021 Q1FY2020 YoY% Q4FY20
Slide 7: Segmental Revenue and PBIT/(LBIT) Analysis for Q1FY2021 (1/2)
Segmental Revenue and PBIT/ (LBIT) Analysis for Q1FY2021 (1/2) Effective initiatives boosted higher PBIT in Property Development segment Property Development Performance improved by > 10-fold due to: Q1 FY2021 Q1 FY2020 • Higher revenue (+25.5% YoY) resulted by higher sales and Revenue RM553.0m RM44
Slide 8: Segmental Revenue and PBIT/(LBIT) Analysis for Q1FY2021 (2/2)
Segmental Revenue and PBIT/ (LBIT) Analysis for Q1FY2021 (2/2) Lower losses seen in Investment & Asset Management and Leisure segments Investment & Asset Management Leisure Q1 FY2021 Q1 FY2020 Q1 FY2021 Q1 FY2020 Revenue RM22.4m RM17.4m 28.7% Revenue RM14.1m RM18.5m 23.8% PBIT (RM2.7m) (RM4.5m) 40.0
Slide 9: Cash and Debt as at March 2021
Cash and Debt as at 31 March 2021 Cash balances remained healthy with positive operating cash flow generated from sales of completed stocks Cash & Cash Equivalents Group Debt (RM mil) (RM mil) 31 Dec 2020 1,000.0 31 Mar 2021 (Restated) 900.0 801.8 15.0 2.7% 800.0 50.8 0.2 746.3 RM3,500.6m RM3,409.4m
Slide 10: Property Development Inventories
Definitions: ▪ Completed – Projects completed as at 1 Jan 2021 ▪ Incoming Completed – Projects to be completed in FY2021 ▪ Not New Launch – Target completion after FY2021 Property Development Inventories ▪ New Launch – Projects launched in FY2021 More property development activities to unlock land v
Slide 11: Operational Performance for Q1FY2021
Operational Performance for Q1FY2021
Slide 12: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location Residential landed products continue to drive sales achieved; buoyed by industrial products as second highest contributor Q1 FY2021 Sales Achieved By Product Type RM630.2m By Location (RM mil) (RM mil) Statutory Klang 19.1 22.0 (3.0%) (3.5%) Johor Resident
Slide 13: Unbilled Sales as at March 2021
Unbilled Sales as at 31 March 2021 Stable unbilled sales with majority from Township Development By Property Development Type By Location 31 Mar 2021 31 Dec 2020 Integrated Township RM1,655.8m 4.8% RM1,580.3m Development Development RM297.9m RM1,357.9m (18.0%) (82.0%) 1.2 169.5 2.9 142.2 189.6 228.1
Slide 14: Q1 FY2021 Launches
Q1 FY2021 Launches Encouraging average take-up rates of >90% for projects launched in the first quarter Launches in Q1 FY2021 186 units | RM111 million GDV 100% Take-up rate 97% Take-up rate 122 units, GDV: RM80 mil 64 units, GDV: RM31 mil Launched: 29 January 2021 Launched: 14 March 2021 Launched:
Slide 15: Q2 to Q4 FY2021 Launches
Q2 to Q4 FY2021 Launches Strategic launch plan + robust digital marketing & sales initiatives to sustain sales performance Remaining Planned Launches FY2021 Q2-Q4: ~RM3.0 billion GDV Agile Launch Plan with Healthy Product Mix Planned launches in Q2: RM1,636.4m & 1,838 units GDV GDV Product Units (RM
Slide 16: Year-to-date Awards & Recognitions
Year-to-date Awards & Recognitions Further recognitions on SD Prop’s as a leader in building sustainable communities BCI Asia Top 10 Awards EdgeProp Malaysia’s Best Managed and Sustainable Lead Managers’ League Table Awards 15 February 2021 Property Awards 2021 9 April 2021 BCI Asia Top 10 Developer
Slide 17: Strategy Moving Forward
Strategy Moving Forward
Slide 18: 2021 Outlook
2021 Outlook Expect 2021 to remain challenging; agile launch plan & cashflow preservation is key Agenda Decision on Commitment for equity COVID-19 pandemic Property overhang issue in a International Accounting injection to Battersea continues to prevail subdued market Standards 23 Power Station Proj
Slide 19: MY: Better Economic Performance in Q1 2021
MY: Better Economic Performance in Q1 2021 MY: Smaller GDP contraction of -0.5% (4Q 2020: -3.4%) despite the imposition of MCO 2.0 UK: Housing market shows sign of recovery “The smaller decline of 0.5% in the first quarter was supported mainly by the improvement in domestic demand and robust exports
Slide 20: Future End-State by 2025
Future End-State by 2025 Transformation from a pure-play property developer to a sustainable real estate development company Pure-Play Property Developer Real Estate Development Company Business Model Master Developer Community Builder Investment & Asset Manager • Sustainable Township & Integrated •
Slide 21: Strategic and Tactical Plans are Essential to Achieve End-State 2025
Strategic and Tactical Plans are Essential to Achieve End-State 2025 Bridging the gap between strategy and execution The 4 Corporate Priorities will serve as a guide to pivot our business… …underpinned by 7 Focus Areas 1 Broaden Income Streams 2 Deepening Competencies 1 Operational Excellence • Mast
Slide 22: Focus Areas
7 Focus Areas Connecting the dots for our organisational transformation journey 1 Operational Excellence Establish a firm foundation to transform the Group into a performance-driven organisation through continuous improvement in the way we work 2 Organisational Excellence Raise productivity and enri
Slide 23: Investment Proposition
Investment Proposition
Slide 24: Investment Proposition
Investment Proposition Strong fundamentals and track records for growth Improved Financial 1 Resilient Financial Position Performance Solid Balance Sheet Revenue Visibility * as at Mar 2021 ^ as at Apr 2021 Revenue Low Net Gearing Unbilled Sales Bookings RM589.5m (+23.7% YoY) 29.5% RM1.7b* RM0.8b^ T
Slide 25: Thank You / Q&A Session
Property THANK YOU / Q&A SESSION
Slide 26: Appendix
Sime Appendix
Slide 27: Remaining Landbank and GDV as at May 2021
Remaining Landbank and GDV as at 3 May 2021 Sustainable growth with remaining developable period of 25-30 years Ongoing Remaining Developable Land RM33.4 bil Remaining developable area for Other areas in Klang Valley (37.4%) future developments (MVV, 2,014 (13.3%) Planters’ Haven West and others) RM
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